Question

Town of Willingdon adopted the following General Fund budget for the fiscal year beginning July 1: Estimated revenues: Taxes $ 15,000,000 Intergovernmental revenues 1,000,000 Licenses and permits 400,000 Fines and forfeits 150,000 Miscellaneous revenues 100,000 Total estimated revenues $ 16,650,000 Appropriations: General government $ 8,000,000 Public safety 6,000,000 Public works 1,550,000 Health and welfare 950,000 Miscellaneous 100,000 Total appropriations $ 16,600,000 Required a-1. Prepare the general journal entries to record the adopted budget at the beginning of the fiscal year.

Answer 1

Answer and Explanation:

a-1 The journal entry is given below:

Estimated revenue Dr $16,650,000

To Budgetary fund balance $50,000

To Appropriations $16,600,000

(Being estimated revenue is recorded)

Here the estimated revenue is debited while on the other hand, the budgetary fund and appropriation is credited